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The major way that the FDIC handles failed banks is called the: A. Payback ASAP method  ...

The major way that the FDIC handles failed banks is called the:

A. Payback ASAP method  

B. Purchase & Assumption method  

C. The Payoff method

D. The Safety Net Approach

Please explain

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Answer #1

Correct answer is option B Purchase and assumption method

Explanation:-In this method,FDIC finds out the willing partner to merge that failed bank in itself or we can say healthy bank purchases the unhealthy bank. In this method deposits of depositors is safe .

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